KUALA LUMPUR – Malaysian state oil firm Petronas has agreed to the Canadian government's extension of a review of its C$5.17 billion ($5.2 billion) bid for gas producer Progress Energy Resources , said two Petronas sources familiar with the deal.

The decision was made by a regular monthly Petronas board meeting, the sources told Reuters, adding the Malaysian firm is also studying additional steps to reassure Canada that the proposed acquisition will have a "net benefit" for the country, the sources said.

"Petronas will go all the way to secure this deal. It is important to Petronas that the deal is done," one of the sources said.

Canada blocked Petronas' bid for Progress Energy this month after Industry Minister Christian Paradis said it was not likely to bring a 'net benefit' to the country. He gave Petronas 30 days to make additional representations.

Progress CEO Michael Culbert has blamed a "communications breakdown" for Canada's surprise rejection of the deal, and said he was optimistic the deal could get back on track.

FOLLOW FOX BUSINESS

Get Our Free Newsletter

Stocks

Top Stories

U.S. stocks declined on Tuesday in a retreat from the previous session's sharp rally, but major indexes remained on track for first-quarter gains and the S&P 500 was set for its ninth straight quarterly rise.